BMO announces sale of EMEA Asset Management business
BMO has reached a definitive agreement with Ameriprise Financial, to sell the entities that represent its EMEA Asset Management business for GBP 615 million.
The all-cash transaction is subject to regulatory approvals, and other customary closing conditions. Separately, in the U.S. the transaction includes the opportunity for certain BMO asset management clients to move to Columbia Threadneedle Investments, subject to client consent. The terms of the U.S. agreement were not disclosed.
"This transaction is consistent with BMO's focus on long-term profitability as a leading North American bank and wealth manager, and enables us to focus our resources where we have a competitive advantage and are well-positioned to deliver growth and accretive returns," said Joanna Rotenberg, Group Head, BMO Wealth Management. "We will continue to invest in our diversified North American Wealth businesses, including our Canadian asset management business, to provide an unrivalled experience for our clients as their needs change."
Columbia Threadneedle is Ameriprise Financial's global asset management business, overseeing investments for individuals, advisors and wealth managers, as well as institutions. The transaction significantly increases Columbia Threadneedle's EMEA business and brings BMO GAM's talent and strategic capabilities in EMEA to Columbia Threadneedle that can be leveraged globally, including its expertise in Responsible Investment, Liability Driven Investing, Fiduciary management, European Real Estate and Investment Trusts.
As part of the transaction, BMO and Columbia Threadneedle will also establish a strategic relationship to offer BMO's North American Wealth Management clients opportunities to access a wide range of Columbia Threadneedle investment management solutions, including Responsible Engagement Overlay, ESG and Alternatives, upon close.
"Columbia Threadneedle is a global player in asset management and is well positioned to take the businesses to the next level. As clients' needs for asset management shift, scale, new capabilities and distribution reach become even more critical. This transaction is a great outcome for both institutions, and for our clients," continued Rotenberg.
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